Modeling coskewness with zero correlation and correlation with zero coskewness

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Bernard, Carole, Chen, Jinghui, Vanduffel, Steven
Format: Preprint
Published: 2024
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866916529502683136
author Bernard, Carole
Chen, Jinghui
Vanduffel, Steven
author_facet Bernard, Carole
Chen, Jinghui
Vanduffel, Steven
contents This paper shows that one needs to be careful when making statements on potential links between correlation and coskewness. Specifically, we first show that, on the one hand, it is possible to observe any possible values of coskewness among symmetric random variables but zero pairwise correlations of these variables. On the other hand, it is also possible to have zero coskewness and any level of correlation. Second, we generalize this result to the case of arbitrary marginal distributions showing the absence of a general link between rank correlation and standardized rank coskewness.
format Preprint
id arxiv_https___arxiv_org_abs_2412_13362
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Modeling coskewness with zero correlation and correlation with zero coskewness
Bernard, Carole
Chen, Jinghui
Vanduffel, Steven
Probability
Theoretical Economics
Statistics Theory
This paper shows that one needs to be careful when making statements on potential links between correlation and coskewness. Specifically, we first show that, on the one hand, it is possible to observe any possible values of coskewness among symmetric random variables but zero pairwise correlations of these variables. On the other hand, it is also possible to have zero coskewness and any level of correlation. Second, we generalize this result to the case of arbitrary marginal distributions showing the absence of a general link between rank correlation and standardized rank coskewness.
title Modeling coskewness with zero correlation and correlation with zero coskewness
topic Probability
Theoretical Economics
Statistics Theory
url https://arxiv.org/abs/2412.13362